Cherry, a leading pan-European seed investor, has unveiled a fresh $500 million in new fund, doubling down on its ambition to propel Europe into the next era of technological dominance. With offices in Stockholm, Berlin, and London, Cherry has been a key player in the Nordic startup ecosystem, backing ventures such as Carbo Culture, Juni, Bits, and Qura. Now, the firm is taking a bold stand against the prevailing narrative of European tech decline, publishing an open letter to founders pledging to be part of the solution.
The launch of Cherry’s Fund V arrives at a crucial moment as geopolitical shifts, including a renewed U.S. focus on tech under the Trump administration and the rise of AI powerhouses like DeepSeek, underscore the need for Europe to secure its place on the global stage. Cherry’s latest fund signals a firm commitment to fostering frontier technologies, backing companies that take bold risks—just as The Exploration Company is doing in space tech and Robeaute in neurosurgical robotics.
“The next decade will look meaningfully different from the last,” Cherry’s open letter reads. “We need to act boldly and defy conventional expectations.”
Despite a challenging investment climate, Cherry’s fund was raised within a few months and was oversubscribed. The fund has attracted a diverse set of investors, including industry leaders from Supercell, Wolt, and Flix, who have previously contributed to Europe’s startup ecosystem. The firm plans to allocate the fund between early-stage investments and an opportunity fund to support companies beyond Series B.
Cherry’s investors have backgrounds in companies such as Zalando, Spotify, and Uber, bringing operational experience to support startups. With 130 portfolio companies and an 80% seed-to-Series A graduation rate, Cherry has been actively involved in fostering startup growth.
Cherry’s latest fund highlights ongoing efforts to strengthen Europe’s innovation ecosystem. The firm advocates for greater collaboration among policymakers, entrepreneurs, and researchers to maintain the region’s relevance in global technology development. “If Europe is to build on its first wave of success stories to create the next, on a bigger scale—we all need to play our part,” the letter notes.
Fund V represents a significant investment in European tech, with a focus on supporting emerging companies in strategic sectors. The broader impact of such initiatives remains to be seen as the market evolves.
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Read the orginal article: https://arcticstartup.com/cherry-launches-500m-fund/
